If a bank compounds interest quarterly on its accounts, the effective annual rate (EAR) earned will the nominal rate (APR). a) be less than b) be greater than c) be equal to As the number of compounding periods per year increases, a) the future value of an investment will decrease. b) the future value of an investment will increase. c) nothing changes. Compounding frequency has no impact on future value or present value. d) the present value of an investment will increase. What is the historical average annual return of a stock with the following end-of- year prices? Year Share Price 2016 $78.82 2017 $81.39 2018 $79.20 2019 $85.77 a) 8.82% b) 2.22% Oc) 2.86% d) 2.96% e) 3.26% A bond is currently rated as BBB. This bond is considered to be: a) high-yield grade. b) Both B and D are correct. Oc) investment grade. d) in default. e) noninvestment grade. List two examples of nonpecuniary benefits often available to firm executives. IRR has reinvestment rate assumption than NPV. a) the same b) a more realistic c) a less realistic